TPT Investment Management launches new LDI solution

• TPT Investment Management (TPTIM) uses a total portfolio approach to LDI in order to achieve a close curve match, utilising funds designed around client liability profiles

• The solution is flexible to the needs of individual schemes and offers better value due to TPTIM’s increased scale from consolidation

• The new LDI solution will form part of TPT’s new fiduciary management offering for UK pension schemes 

TPTIM’s new LDI solution will be available to Defined Benefit schemes through its fiduciary management service. It is designed to enable schemes to implement robust long-term funding strategies focused on their endgame objectives. It offers an integrated approach to help pension schemes manage liability risk, return requirements and liquidity needs. The LDI solution is flexible to the specific needs of individual schemes while also offering better value due to the benefits of scale from consolidation.

The LDI solution is built around the liability hedging contribution from non-LDI assets such as corporate bonds and secure income investments. The LDI offering is supported by the liquid asset portfolio, and this is fully integrated into the collateral management framework. As the fiduciary manager with control over the whole portfolio, TPTIM can efficiently rebalance between liquid assets and LDI when required.

TPTIM will use a total portfolio approach to LDI that achieves a close curve match, utilising funds designed around client liability profiles. It will maximise capital efficiency to meet required returns through a collateral framework designed around a holistic view of portfolio liquidity. It also provides TPTIM with the flexibility to set recapitalisation and re-leverage points of the funds, so capital isn’t tied up in LDI funds unnecessarily. TPTIM’s LDI solution also benefits from the timely provision of high-quality reporting and data. This is monitored daily with automated data feeds of a suite of monitoring metrics enabling improved oversight and portfolio management. 

Peter Smith, Head of Investment at TPT Investment Management, said:   

“We’re excited to launch our new best-in-class LDI solution with Insight Investment, which brought an innovative and collaborative spirit to the development of this new solution for DB Schemes. As a benefit of our scale and consolidation, we believe it provides an excellent value proposition that would not necessarily be available to smaller, stand-alone schemes. Our new LDI solution is bespoke and can be tailored to the needs and risk profiles of individual schemes to manage their specific liability characteristics, return requirements and liquidity needs. Risk management is enhanced through industry-leading data and reporting. The experience of our investment team and alignment of interests with our ownership will allow us to continue to pass the benefits of our scale onto other trustees and schemes.”

Serkan Bektas, Head of the Client Solutions Group at Insight Investment; said: 

“We are very pleased to be working with TPTIM on this critical component of its fiduciary management service. The teams at Insight and TPTIM have built a strong partnership, working together on a rigorous design process which has resulted in the creation of bespoke hedges for TPTIM’s individual schemes. The Insight team took care to ensure the overall solution is focused on delivering the outcomes that scheme members need, with attention paid to efficient management of costs and the implementation of a straightforward framework for monitoring and execution.”

Notes to Editors:

TPT Retirement Solutions (TPT) is one of the UK’s leading providers of workplace pensions with over 75 years’ experience of managing defined benefit and defined contribution pension schemes. It has £9.6 billion of assets under management (as at 30 September 2023) and more than 450,000 members.

TPT’s mission is to make pension schemes perform better for everyone, from the sponsoring employers and trustees to the members who are saving for the future. It is an innovative, forward-thinking organisation, investing in technology to improve the services they provide. TPT is ultimately owned by a pension fund, providing genuine alignment of interests with those of its clients and scheme members.

TPT Retirement Solutions Limited is wholly owned by Verity Trustees Limited in its capacity as trustee of The Pensions Trust. TPT Retirement Solutions Limited provides pension management and administration services to UK pension schemes.

TPT Investment Management Limited is a wholly owned subsidiary of TPT Retirement Solutions Limited. TPT Investment Management Limited is authorised and regulated by the Financial Conduct Authority (FCA) and provides investment management and consultancy services to UK pension schemes.

Registered address: Verity House, 6 Canal Wharf, Leeds LS11 5BQ.